Strong agricultural and services sector activity in the first half of 2023 prompted the IMF’s upward revision of Brazil’s growth to 3.1% from 2.1% in July.
“Consumption has also remained strong, supported by fiscal stimulus,” the agency said in the update of its World Economic Outlook.
Mexico’s growth was revised up 0.6 percentage points to 3.2%, with the IMF attributing it to a post-pandemic recovery that is taking hold in construction and services, as the economy continues to benefit from U.S. demand.
The main regional economies expected to experience a contraction this year are Argentina, with GDP growth estimated at -2.5%, and Chile, with -0.5%, the IMF said.